NYSE Owner and CME Urge CFTC to Regulate Offshore Crypto Platform Hyperliquid

Breaking News: U.S. Regulators Under Pressure to Act on Hyperliquid

CME Group and Intercontinental Exchange (ICE), parent of the New York Stock Exchange, are pushing U.S. regulators to tighten oversight of the cryptocurrency trading platform Hyperliquid, according to a Friday report from Bloomberg. The exchanges argue that Hyperliquid’s largely offshore and lightly regulated operations pose risks to market integrity.

Sources familiar with the matter told Bloomberg that CME and ICE have been lobbying the Commodity Futures Trading Commission (CFTC) and key lawmakers in Congress. They want federal rules applied to Hyperliquid, which they claim operates in a regulatory gray area.

Quotes from Experts

“This is a classic case of established players using regulation to stifle competition,” said Dr. Elena Torres, a financial law professor at Georgetown University. “But the risks are real: an unregulated platform handling billions in derivatives could destabilize markets.”

Former CFTC commissioner Mark Wetjen, now a partner at a D.C. law firm, added: “The CFTC has been cautious, but with CME and ICE making this a public issue, political pressure will mount. A crackdown could come within months.”

Background

Hyperliquid is a decentralized exchange (DEX) offering perpetual futures trading with leverage up to 50x. Unlike regulated venues like CME, it has no U.S. registration and serves clients globally, including Americans using VPNs.

CME and ICE, which operate the world’s largest futures exchanges, have long complained that offshore crypto platforms undercut their compliance costs. The complaint echoes earlier clashes between traditional finance and crypto startups like Binance and FTX.

What This Means

If the CFTC bows to pressure, Hyperliquid could face registration requirements, margin limits, and anti-money laundering checks. That would raise costs for the platform and potentially drive it fully offshore, away from U.S. investors.

“Regulation here isn’t just about Hyperliquid—it signals the death of unsupervised crypto derivatives in the U.S.,” said industry analyst Sarah Kim of CryptoRisk Advisors. “Traders should expect tighter rules across the board.”

This is a developing story. Read the full original report at The Defiant.